12A Registration

12A Registration

The concept of 12A registration is allotted by the Income Tax Department to trust organizations and other similar organization excluding profit organizations. The objective of the registration is to give exclusion from paying Income Tax. 12A registration is usually applied instantly after registration. NGOs, Trusts, and Section 8 that have incorporated 12A Registration get the benefit of exemption from income tax and other income. The 12A registration feature is accessible for all non-profit organizations. Therefore, it is mandatory for all Non-profit organizations, NGOs, and Trusts to get the information of 12A registration of the Income Tax Act.

Eligibility for 12A Registration

The entities that are looking for Section 12A registration must come under the non-profit purpose such as philanthropy, charity, and all that. In such an organization, their work can include social service, education, development for underprivileged children, women empowerment, and so on. The purpose of charitable and other social services of any organization is eligible to register under 12A registration.

The first criteria for 12A registration are to verify whether any profit objective is indulged in the process obtained on by the applicant or entity. If there is no objective of earning profit and revenue, then the respective organization is eligible for 12A Registration.

In case, the applicant or organization found to be involved in any profit or commercial activities the benefit under the section will be barred. In such circumstances, registration is approved solely if the receipts from the commercial activities are not exceeding 20 percent of the total revenue receipt of the applicant or organization.

It is also kept in mind that 12A Registration is not valid for Family Trusts and Private firms. The purpose of the company or organization must revolve around the welfare of the public.

Documents Needed for 12A Registration

Yearly financial statement receipt for 3 previous financial years

Note on the activities conducted by the entity

Note on the activities performed by the organization or firm

A self-attested copy of the documents that have proof of the acceptance or alteration of the goal of the organization needs to be filed.

A self-attested copy of the equipment that was utilized to form the trust and set the entity should be filed.

It is mandatory to file a self-attested copy of the registration that was formed with the authorized entity. The authorized entity might be the Societies or Registrar of Public Trusts, Registrar of Companies, and Registrar of Firms.

The applicant firm might have earlier applied for the 12A registration process. In such a case, the application might be discarded. A self-attested copy of the order of the cancellation should be enclosed with the application.

In many cases, The Income Tax Department might reject the registration approved under this section. After correcting the default, the applicant firm is permitted to apply the following application. In such circumstances, it is mandatory to file a self-attested copy of the order approving the registration.

Procedure for Obtaining 12A Registration

The applicant firm needs to file the application in an appropriate form online. Post the submission of 12A registration, the commissioner might ask the applicant to submit other subsequent documents and details as per requirements. The commissioner may ask for such documents to ensure the authenticity of the activities performed by the Trust in front of the Income Tax Department.

The commissioner might be contented with the 12A registration application. In such circumstances, the commissioner will give an approval letter mentioning that the applicant is eligible for 12A registration. The written approval is given to the applicant and the applicant can get the benefits of 12A registration.

The commissioner might not be contented with the application. In such a scenario, it is the sole right of the commissioner to cancel the application. The applicant should be conveyed in the writing of the cause of the registration cancellation.

Valcus Pvt Ltd is a certified and dedicated company registration firm in India. It is also specialized in the 12A registration Process. You can freely communicate with us and we will come up with the best accurate plan for company registration.

How Valcus Pvt helps in the processing of 12A registration

Well, being a foremost company registration and CA consultancy firm we know what is our responsibility. Here is our method of processing 12A registration:

We collect registration application and required documents from clients

After that our experts check whether the documents and application form provided by the client is complete or not.

If a client has left any portion or not able to understand how to fill the form and what types of documents need to submit, then we will make them informed about the necessary documents and things done from their side.

After we get proper documentation and application from client-side, we process the registration application and documents to the concerned department.

It is our responsibility to get the registration certificate on time. Our legal and compliance experts are very well familiar with the process and that is why we commit fast approval and magnificent on-time completion of the registration process.

The Advantages of 12A Registration for NGOs in India

12A registration is a significant certification provided to non-governmental organizations (NGOs) and trusts in India. It grants them the eligibility to claim tax exemptions on their income. With the convenience of online 12A registration, the process has become streamlined, allowing NGOs to apply and obtain the 12A certificate efficiently.

Know the Advantages of 12A Registration for NGOs

1. Tax Exemptions: The foremost advantage of 12A registration is the ability to claim tax exemptions. Once an NGO receives the 12A certificate, it becomes eligible for tax benefits under Section 12A of the Income Tax Act. This encourages donors to contribute to the organization, as their contributions become eligible for tax deductions.

2. Enhanced Credibility: NGOs with 12A registration enjoy enhanced credibility in the eyes of potential donors, government agencies, and the public. It demonstrates that the organization has met specific criteria and adheres to the necessary legal and financial regulations. This credibility can attract more donors and funding opportunities.Note on the activities performed by the organization or firm

3. Encourages Donor Contributions: Individuals and corporates are more likely to contribute to NGOs with 12A registration. The availability of tax exemptions on donations acts as an incentive for donors to support the organization's cause. Online 12A registration simplifies the process, making it easier for NGOs to showcase their eligibility for tax benefits.

4. Access to Government Grants: Many government departments and agencies provide grants and funding opportunities exclusively to registered NGOs. With 12A registration, NGOs can access these government grants, which can significantly support their projects and initiatives. It opens doors to collaborate with government bodies and participate in development programs.

5. Long-term Validity: The 12A registration certificate for NGOs is generally valid indefinitely unless cancelled or surrendered voluntarily. This provides stability and reassurance to the organization and its stakeholders, ensuring continued tax benefits and recognition.

6. Ease of Online Registration: The availability of online 12A registration simplifies the application process for NGOs. They can apply for 12A registration conveniently through the designated government portal, saving time and effort. The online system also enables NGOs to track the progress of their application and receive updates electronically.

Obtaining 12A registration through the online process thus offers several advantages for NGOs in India. It provides tax exemptions, enhances credibility, encourages donor contributions, grants access to government funding, and offers long-term validity. The ease of online registration further streamlines the process, making it accessible and convenient for NGOs. By obtaining the 12A certificate, NGOs can strengthen their financial stability and contribute effectively to social welfare and development initiatives.

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Expertise and Efficiency Combined

Valcus is the top choice for 12A registration due to our unmatched expertise and efficiency in the field. With a team of experienced professionals, we ensure a seamless and hassle-free process for obtaining the 12A registration certificate. Our in-depth knowledge of the requirements and documentation needed for registration ensures accuracy and compliance.

At Valcus, we understand the importance of time and deliver prompt results, saving valuable time for NGOs. Choosing our services guarantees reliable guidance, personalized support, and a successful 12A registration experience. Contact us today!

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